Karnataka's 2026-27 budget adopts alcohol content tax for fairer prices
India
Karnataka just made history by switching to a new alcohol tax system based on how much alcohol is actually in your drink.
Announced by Chief Minister Siddaramaiah in the 2026-27 budget, this move is meant to make liquor prices fairer and more affordable, especially compared to neighboring states like Tamil Nadu, Andhra Pradesh, and Maharashtra.
IML slabs cut to 8
Now, taxes depend on alcohol content—a standard used worldwide.
The state has stopped setting fixed prices, so producers can place their drinks within slabs as they see fit.
Plus, the number of pricing slabs for Indian-made liquor (IML) brands has been cut from 16 to eight.
The Excise Department says these changes should make popular brands cheaper across Karnataka.